New organisationAs of January 1, 2012, the Volvo Group introduced a new functional organization.

Read more about the Volvo Group's new organization as from January 1, 2012 in Note 6.

Impact on segment reportingUnder the prior organization, the Trucks operations were organized in four business areas, which were aggregated to one reportable segment for Trucks. Under the new organization, the consolidation of the four truck areas into one Trucks business area is further emphasizing the utilization of resources between the different brands to optimize the overall global potential for the Trucks business. Therefore, the overall Truck business is considered one single operating segment under the new organization. The Volvo Group will thus continue to be reported in the six segments Trucks, Construction Equipment, Buses, Volvo Penta, Customer Finance and Group functions and other. The reported segment information is based on the information used internally by the chief operating decision maker, i.e. the Volvo Group CEO.

The heading Group functions and other contains the cost of corporate functions, external business related to the business support functions and the operations within business areas Volvo Rents and Governmental Sales.

Impact on goodwill impairment testingThe Trucks segment is considered one single cash generating unit (CGU) under the new organization. Goodwill related to the area Trucks are therefore from 2012 evaluated based on the cash generation capacity of the overall Trucks segment.

Restatement of financial reporting for 2011The implementation of the functional organization has resulted in a reallocation of responsibilities within the Group. As a consequence, certain cost items have been redefined from a functional perspective, causing a shift between the lines in the income statement of the Volvo Group as well as the income statement of the Industrial Operations. In addition, as a result of the reorganization as well as the financial framework, certain sales and cost items are reported differently from a segment reporting perspective from 2012. To facilitate comparability between the years, 2011 income statement and segment reporting data has been restated.

The impact of the restatement of the income statement for 2011 and the segment reporting for 2011 due to the new organization are disclosed below.